Economy - overview:
High population density, limited land access, and strict internal and external controls have kept economic conditions in the Gaza Strip - the smaller of the two areas under the Palestinian Authority - even more degraded than in the West Bank. An anticipated Israeli withdrawal from the Gaza Strip in 2005 may offer some medium-term opportunities for economic growth. The beginning of the second intifadah in September 2000 sparked an economic downturn, largely the result of Israeli closure policies; these policies, which were imposed in response to security interests in Israel, disrupted labor and commodity relationships with the Gaza Strip. In 2001, and even more severely in 2003, Israeli military measures in Palestinian Authority areas resulted in the destruction of much capital plant, the disruption of administrative structure, and widespread business closures. Including the West Bank, the UN estimates that more than 100,000 Palestinians out of the 125,000 who used to work in Israel or in joint industrial zones have lost their jobs. International aid of $2 billion to Gaza Strip and the West Bank in 2004 prevented the complete collapse of the economy and allowed some reforms in the government's financial operations. Meanwhile unemployment has continued at half the labor force. ARAFAT's death in 2004 leaves open more political options that could affect the economy.
GDP:
purchasing power parity - $768 million (2003 est.)
GDP - real growth rate:
4.5% (2003 est.)
GDP - per capita:
purchasing power parity - $600 (2003 est.)
GDP - composition by sector:
agriculture: 9%
industry: 28%
services: 63% (includes West Bank) (2002 est.)
Labor force:
725,000 (2004)
Labor force - by occupation:
agriculture 14%, industry 19%, services 66% (2004)
Unemployment rate:
50% (includes West Bank) (2003 est.)
Population below poverty line:
81% (2004 est.)
Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA
Inflation rate (consumer prices):
2.2% (includes West Bank) (2001 est.)
Budget:
revenues: $676.6 million
expenditures: $1.155 billion, including capital expenditures of NA; note - these budget data include West Bank (2003)
Agriculture - products:
olives, citrus, vegetables; beef, dairy products
Industries:
generally small family businesses that produce textiles, soap, olive-wood carvings, and mother-of-pearl souvenirs; the Israelis have established some small-scale modern industries in an industrial center
Industrial production growth rate:
NA
Electricity - production:
NA kWh; note - electricity supplied by Israel
Electricity - consumption:
NA kWh
Electricity - exports:
0 kWh (2001)
Electricity - imports:
NA kWh; note - electricity supplied by Israel (2001)
Exports:
$205 million f.o.b., includes West Bank (2002)
Exports - commodities:
citrus, flowers
Exports - partners:
Israel, Egypt, West Bank
Imports:
$1.9 billion c.i.f., includes West Bank (2002)
Imports - commodities:
food, consumer goods, construction materials
Imports - partners:
Israel, Egypt, West Bank
Debt - external:
$108 million (includes West Bank) (1997 est.)
Economic aid - recipient:
$2 billion (includes West Bank) (2004 est.)
Currency (code):
new Israeli shekel (ILS)
Exchange rates:
new Israeli shekels per US dollar - 4.482 (2004), 4.5541 (2003), 4.7378 (2002), 4.2057 (2001), 4.0773 (2000)
Fiscal year:
calendar year
